Home >Documents >08.07.11_Corporate Presentation MPX Call

08.07.11_Corporate Presentation MPX Call

Date post:06-Apr-2018
Category:
View:213 times
Download:0 times
Share this document with a friend
Transcript:
  • 8/3/2019 08.07.11_Corporate Presentation MPX Call

    1/20

    1

    Project Development Update

    Conference Call

    Project Development Update

    Conference Call

    080710

  • 8/3/2019 08.07.11_Corporate Presentation MPX Call

    2/20

  • 8/3/2019 08.07.11_Corporate Presentation MPX Call

    3/20

    3

    Integrated and diversified generation portfolio

    Size (MW) MPX (MW)

    Coal 5,900 5,540

    Natural Gas 3,300 3,300

    Hydro 380 260

    Diesel 23 12

    9,603 9,112

    UTE Porto de Itaqui (Maranho)(360 MW + 360 MW)

    UTE Porto do Pecm (Cear)(720 MW + 360MW)

    UTE Porto do Au (Rio de Janeiro)(2,100 MW + 3,300 MW)UTE Castilla (Chile)

    (1,400 MW)

    UTE MPX Sul

    (Rio Grande do Sul)(600 MW)

    UHE Baixo Iguau (Paran)(350 MW)

    UTE Serra do Navio (Amap)(23 MW)

    PCH Capivara (Amap)(30 MW)

    * Already considering 100% of UTE Au and UTE Castilla, according to the relevant fact released on February 20, 2008

    Coal Mines Colombia

    MPX will be a leading integrated and diversified energy producer

    Seival Coal Mine(Rio Grande do Sul)

  • 8/3/2019 08.07.11_Corporate Presentation MPX Call

    4/20

    4

    Brazilian Power Market OverviewBrazilian Power Market Overview

  • 8/3/2019 08.07.11_Corporate Presentation MPX Call

    5/20

    5

    Spot Prices Indicate Need for New Capacity

    Rationing in

    2001:consumptiondeclined to 1998levels.

    Short-term situationaggravated bystructural deficit.

    ENA in the month ofJanuary 2008 was the2nd worstin the data series average spot priceclose to the ceilingprice

    History Southeast (~ 60% of the Brazilian market)

    Rationing result: structural energy surplus (decline in

    consumption + Thermoelectric Plant Priority Program(PPT)), combined with subsequent favorable hydrologicalperiods low spot prices.

    Spot price LoadENA(Hydropower)

    EAR(Stored Energy)

    GWavg

  • 8/3/2019 08.07.11_Corporate Presentation MPX Call

    6/20

    6

    Forecasted Marginal Operating Costs (CMO)

    218.87218.43164.16128.1588.60North

    212.00219.75161.38133.4890.44Northeast

    261.05230.61176.91142.1086.88South

    267.55240.55178.14141.3276.47Southeast/Midwest

    20122011201020092008SUBSYSTEM

    Base Scenario CMO (R$ / MWh)

    70

    110

    150

    190

    230

    270

    2008 2009 2010 2011 2012

    Southeast/Midwest

    South

    Northeast

    North

    R$/M

    Wh

    Source: ONS

    MPX will have over

    2,600 GWh in energyavailable for sale in

    2011, from Itaqui andPecm plants

  • 8/3/2019 08.07.11_Corporate Presentation MPX Call

    7/20

    7

    MPX BrazilMPX Brazil

  • 8/3/2019 08.07.11_Corporate Presentation MPX Call

    8/20

    8

    Contract price: US$ 503.5 million

    EPC contracts assure the start up of the operations in 2011 Bonus mechanisms to accelerate COD1

    Down payment for long lead items already made

    Civil works to start in Nov 2008

    EPC

    Eligibility for BNDES and IDB financing secured

    BNDES and IDB due diligence phase starting on July 14

    Bridge loan contracts of US$ 160 million

    Funding

    Preliminary License granted by State EnvironmentalAuthority

    3 Public Hearings in the State of Maranho finalized andissues raised addressed by the environmental study

    IBAMA cross-checking entire process

    Installation License shall be jointly granted by StateAuthority and IBAMA before Oct 2008

    Licensing

    315 MW sold in the October 2007 auction A-5 Full pass-through of fuel costs to energy prices

    Annual Fixed Revenue of R$ 231,3 million 2 (escalated byIPCA3)

    Energy sales

    Details

    UTE Porto de Itaqui

    Fuel: Coal

    Location: Maranho State, Itaqui Port

    Shareholder: 100% MPX

    Start-up: Aug/11

    1. Commercial operation date2. As of June 20083. IPCA = Consumer Price Index

    UTE Porto de Itaqui - 1st phase (360 MW)

    Potential Upsides

    Coal trading spread

    Coal freight spread between Colombia-Brazil and Africa-Brazil

  • 8/3/2019 08.07.11_Corporate Presentation MPX Call

    9/20

    9

    UTE Porto do Pecm - 1st phase (720 MW)

    Contract price: US$ 935.9 million

    EPC contracts assure the start up of the operations in 2011

    Bonus mechanisms to accelerate COD1

    Down payment for long lead items already made

    Construction started in early July 2008

    EPC

    Eligibility for BNDES and IDB financing secured

    BNDES and IDB due diligence phase starting on July 14

    Bridge loan contracts of US$ 270 million

    Funding

    Installation License Issued Construction under way

    Licensing

    615 MW sold in the October 2007 auction A-5

    Full pass-through of fuel costs to energy prices

    Annual Fixed Revenue of R$ 437,5 million 2 (escalated byIPCA3)

    Energy sales

    Details

    UTE Porto do Pecm

    Fuel: Coal

    Location: Cear State, Pecm Port

    Shareholders: 50% MPX / 50% EDP

    Start-up: May/11 (360 MW) + Nov/11 (360 MW)

    Potential Upsides

    Coal trading spread

    Coal freight spread between Colombia-Brazil and Africa-Brazil

    1. Commercial operation date2. As of June 20083. IPCA = Consumer Price Index

  • 8/3/2019 08.07.11_Corporate Presentation MPX Call

    10/20

    10

    UTE Porto do Pecm - 2nd phase (360 MW)

    Negotiations under way with consortium composed byEFACEC, BC Projetos and led by Maire Engineering. Boilersto be supplied by Doosan Babcock and Turbines by

    Siemens, both major players

    MoU to be signed before A-5 auction, scheduled for lateAugust 2008

    EPC

    Public hearing for Preliminary License finalized in May 08

    Preliminary License to be issued in Jul 2008

    Licensing

    Full capacity registered for A-5 auction, scheduled for lateAugust 2008

    Energy sales

    Details

    UTE Porto do Pecm

    Fuel: Coal

    Location: Cear State, Pecm Port

    Shareholder: 100% MPX

    Start-up: 2013

    Eligibility process started with BNDES

    Funding

  • 8/3/2019 08.07.11_Corporate Presentation MPX Call

    11/20

    11

    Fuel: Coal

    Location: Rio de Janeiro State, Au Port

    Shareholder: 100% MPX (future strategic partner)

    Start-up: Jul/12 (700MW); Jan/13 (700MW); Jul/13 (700 MW)

    EPC

    US$ 500 million firm commitment from Santander

    US$ 500 million firm commitment from Unibanco

    Bridge loan contracts of US$ 200 million

    Financial advisory agreement with Santander Eligibility process started with BNDES

    Funding

    Public hearings for Preliminary License scheduled for July14 and 15

    Preliminary License to be issued in late July 2008

    Licensing

    Participation in A-5 energy auction

    Sale to Free Market within the self-production concept,with option to contract capacity - Negotiations under way

    Energy sales (planned)

    Details

    UTE Porto do Au MOU to be signed in early Aug 2008

    Reservation fee to long lead items in order to secureproject schedule

    UTE Porto do Au 1st phase (2,100 MW)

    Credit Suisse mandated to find strategic partner

  • 8/3/2019 08.07.11_Corporate Presentation MPX Call

    12/20

    12

    Free Market - Shared self production + Capacity option

    Competitiveness in Free Market enhanced by adding option to contract capacity

    CoalSupply

    UTEPorto do Au

    Availableaverage MW

    Self-ProducersQuota

    Q1

    Q2

    PlantsOperations

    Management ofEnergy Requirements

    Quotas of each offtakerQuotasself-producer 1

    Quotasself-producer 2

    Quotasself-producer N

    FreeConsumersOR

    Capacity Pmt

    (fixed)

    +

    Variable cost

    (if dispatched)Qn

    Q3

    Quotasself-producer N

  • 8/3/2019 08.07.11_Corporate Presentation MPX Call

    13/20

    13

    Chilean Power Market OverviewChilean Power Market Overview

  • 8/3/2019 08.07.11_Corporate Presentation MPX Call

    14/20

    14

    6.000

    9.000

    12.000

    15.000

    18.000

    2008

    2009

    2010

    2011

    2012

    2013

    2014

    2015

    2016

    2017

    2018

    2019

    2020

    Expected Capacity

    Required Capacity

    Forecasted Supply/Demand Balance (MW)

    Energy Demand Increasing Faster than Supply

    Source: Santander, CNENote: Projections include only mayor projects such as LNG plants and Hydroayn

    Source: CNE.

    Expected Sales (Th. GWh)

    05.000

    10.00015.00020.00025.00030.00035.00040.00045.000

    2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

    Free Clients Regulated Clients

    6.4%

    5.5%

    Coal generation projects will have to cover the gap betweenincreasing energy demand and projected supply.

    Strong growth in industrial clients energy demand (miningcompanies) as well as power auctions of distributors from

    2012 onward (regulated clients) secures significantopportunities in the SIC for the next decade.

    Supply / Demand Gap

  • 8/3/2019 08.07.11_Corporate Presentation MPX Call

    15/20

    15

    MPX ChileMPX Chile

  • 8/3/2019 08.07.11_Corporate Presentation MPX Call

    16/20

    16

    Fuel: Coal

    Submarket: SIC

    Location: 3rd Region, near Copiap City

    Shareholder: 100% MPX (future strategic partner)

    Start-up: Jul/12 (350MW); Jan/13 (350MW);Jul/13 (350 MW); Jan/14 (350MW)

    EPC

    Funding

    Environmental process started in Sept 2007

    Environmental Impact Assessment to be filed at CONAMA(Environmental Authority) in 3Q08

Embed Size (px)
Recommended